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110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-845
======================================================================
FRANK MELVILLE SUPPORTIVE HOUSING INVESTMENT ACT OF 2008
_______
September 15, 2008.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Frank of Massachusetts, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 5772]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 5772) to amend section 811 of the Cranston-Gonzalez
National Affordable Housing Act to improve the program under
such section for supportive housing for persons with
disabilities, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 9
Background and Need for Legislation.............................. 9
Hearings......................................................... 10
Committee Consideration.......................................... 11
Committee Votes.................................................. 11
Committee Oversight Findings..................................... 11
Performance Goals and Objectives................................. 11
New Budget Authority, Entitlement Authority, and Tax Expenditures 11
Committee Cost Estimate.......................................... 12
Congressional Budget Office Estimate............................. 12
Federal Mandates Statement....................................... 14
Advisory Committee Statement..................................... 14
Constitutional Authority Statement............................... 14
Applicability to Legislative Branch.............................. 15
Earmark Identification........................................... 15
Section-by-Section Analysis of the Legislation................... 15
Changes in Existing Law Made by the Bill, as Reported............ 19
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; REFERENCES.
(a) Short Title.--This Act may be cited as the ``Frank Melville
Supportive Housing Investment Act of 2008''.
(b) References.--Except as otherwise expressly provided, wherever in
this Act an amendment or repeal is expressed in terms of an amendment
to, or repeal of, section 811 or any other provision of section 811,
the reference shall be considered to be made to section 811 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013).
SEC. 2. TENANT-BASED RENTAL ASSISTANCE THROUGH CERTIFICATE FUND.
(a) Termination of Mainstream Tenant-Based Rental Assistance
Program.--Section 811 is amended--
(1) in subsection (b)--
(A) by striking the first subsection designation and
all that follows through the end of subparagraph (B) of
paragraph (2) and inserting the following:
``(b) Authority To Provide Assistance.--The Secretary is authorized
to provide assistance to private nonprofit organizations to expand the
supply of supportive housing for persons with disabilities, which shall
be provided as--
``(1) capital advances in accordance with subsection (d)(1),
and
``(2) contracts for project rental assistance in accordance
with subsection (d)(2).''; and
(B) by striking ``assistance under this paragraph''
and inserting ``Assistance under this subsection'';
(2) in subsection (d), by striking paragraph (4); and
(3) in subsection (l), by striking paragraph (1).
(b) Renewal Through Section 8.--Section 811 is amended by adding at
the end the following new subsection:
``(p) Authorization of Appropriations for Section 8 Assistance.--
``(1) In general.--There is authorized to be appropriated for
tenant-based rental assistance under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) for persons
with disabilities in fiscal year 2009 the amount necessary to
provide a number of incremental vouchers under such section
that is equal to the number of vouchers provided in fiscal year
2008 under the tenant-based rental assistance program under
subsection (d)(4) of this section (as in effect before the date
of the enactment of the Frank Melville Supportive Housing
Investment Act of 2008).
``(2) Requirements upon turnover.--The Secretary shall
develop and issue, to public housing agencies that receive
voucher assistance made available under this subsection and to
public housing agencies that received voucher assistance under
section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) for non-elderly disabled families pursuant to
appropriation Acts for fiscal years 1997 through 2002 or any
other subsequent appropriations for incremental vouchers for
non-elderly disabled families, guidance to ensure that, to the
maximum extent possible, such vouchers continue to be provided
upon turnover to qualified persons with disabilities or to
qualified non-elderly disabled families, respectively.''.
SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM.
(a) Project Rental Assistance Contracts.--Section 811 is amended--
(1) in subsection (d)(2)--
(A) by inserting ``(A) Initial project rental
assistance contract.--'' after ``Project rental
assistance.--''
(B) in the first sentence, by inserting after
``shall'' the following: ``comply with subsection
(e)(2) and shall'';
(C) by striking ``annual contract amount'' each place
such term appears and inserting ``amount provided under
the contract for each year covered by the contract'';
and
(D) by adding at the end the following new
subparagraph:
``(B) Renewal of and increases in contract amounts.--
``(i) Expiration of contract term.--Upon the
expiration of each contract term, subject to the
availability of amounts made available in appropriation
Acts, the Secretary shall adjust the annual contract
amount to provide for reasonable project costs, and any
increases, including adequate reserves and service
coordinators, except that any contract amounts not used
by a project during a contract term shall not be
available for such adjustments upon renewal.
``(ii) Emergency situations.--In the event of
emergency situations that are outside the control of
the owner, the Secretary shall increase the annual
contract amount, subject to reasonable review and
limitations as the Secretary shall provide.''.
(2) in subsection (e)(2)--
(A) in the first sentence, by inserting before the
period at the end the following: ``, except that, in
the case of the sponsor of a project assisted with any
low-income housing tax credit pursuant to section 42 of
the Internal Revenue Code of 1986 or with any tax-
exempt housing bonds, the contract shall have an
initial term of not be less than 360 months and shall
provide funding for a term of 60 months''; and
(B) by striking ``extend any expiring contract'' and
insert ``upon expiration of a contract (or any renewed
contract), renew such contract''.
(b) Program Requirements.--Section 811 is amended--
(1) in subsection (e)--
(A) by striking the subsection heading and inserting
the following: ``Program Requirements'';
(B) by striking paragraph (1) and inserting the
following new paragraph:
``(1) Use restrictions.--
``(A) Term.--Any project for which a capital advance
is provided under subsection (d)(1) shall be operated
for not less than 40 years as supportive housing for
persons with disabilities, in accordance with the
application for the project approved by the Secretary
and shall, during such period, be made available for
occupancy only by very low-income persons with
disabilities.
``(B) Conversion.--If the owner of a project requests
the use of the project for the direct benefit of very
low-income persons with disabilities and, pursuant to
such request the Secretary determines that a project is
no longer needed for use as supportive housing for
persons with disabilities, the Secretary may approve
the request and authorize the owner to convert the
project to such use.''; and
(C) by adding at the end the following new
paragraphs:
``(3) Limitation on use of funds.--No assistance received
under this section (or any State or local government funds used
to supplement such assistance) may be used to replace other
State or local funds previously used, or designated for use, to
assist persons with disabilities.
``(4) Multifamily projects.--
``(A) Limitation.--Except as provided in subparagraph
(B), of the total number of dwelling units in any
multifamily housing project (including any condominium
or cooperative housing project) containing any unit for
which assistance is provided from a capital grant under
subsection (d)(1) made after the date of the enactment
of the Frank Melville Supportive Housing Investment Act
of 2008, the aggregate number that are used for persons
with disabilities, including supportive housing for
persons with disabilities, or to which any occupancy
preference for persons with disabilities applies, may
not exceed 25 percent of such total.
``(B) Exception.--Subparagraph (A) shall not apply in
the case of any project that is a group home or
independent living facility.''; and
(2) in subsection (l), by striking paragraph (4).
(c) Delegated Processing.--Subsection (g) of section 811 (42 U.S.C.
8013(g)) is amended--
(1) by striking ``Selection Criteria.--'' and inserting
``Selection Criteria and Processing.--(1) Selection criteria.--
'';
(2) by redesignating paragraphs (1), (2), (3), (4), (5), (6),
and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and (H),
respectively;
(3) by adding at the end the following new paragraph:
``(2) Delegated Processing.--
``(A) In issuing a capital advance under subsection (d)(1)
for any multifamily project (but not including any project that
is a group home or independent living facility) for which
financing for the purposes described in the last sentence of
subsection (b) is provided by a combination of the capital
advance and sources other than this section, within 30 days of
award of the capital advance, the Secretary shall delegate
review and processing of such projects to a State or local
housing agency that--
``(i) is in geographic proximity to the property;
``(ii) has demonstrated experience in and capacity
for underwriting multifamily housing loans that provide
housing and supportive services;
``(iii) may or may not be providing low-income
housing tax credits in combination with the capital
advance under this section; and
``(iv) agrees to issue a firm commitment within 12
months of delegation.
``(B) The Secretary shall retain the authority to process
capital advances in cases in which no State or local housing
agency has applied to provide delegated processing pursuant to
this paragraph or no such agency has entered into an agreement
with the Secretary to serve as a delegated processing agency.
``(C) An agency to which review and processing is delegated
pursuant to subparagraph (A) may assess a reasonable fee which
shall be included in the capital advance amounts and may
recommend project rental assistance amounts in excess of those
initially awarded by the Secretary. The Secretary shall develop
a schedule for reasonable fees under this subparagraph to be
paid to delegated processing agencies, which shall take into
consideration any other fees to be paid to the agency for other
funding provided to the project by the agency, including bonds,
tax credits, and other gap funding.
``(D) Under such delegated system, the Secretary shall retain
the authority to approve rents and development costs and to
execute a capital advance within 60 days of receipt of the
commitment from the State or local agency. The Secretary shall
provide to such agency and the project sponsor, in writing, the
reasons for any reduction in capital advance amounts or project
rental assistance and such reductions shall be subject to
appeal.''.
(d) Leveraging Other Resources.--Paragraph (1) of section 811(g) (as
so designated by subsection (c)(1) of this section) is amended by
inserting after subparagraph (E) (as so redesignated by subsection
(c)(2) of this section) the following new subparagraph:
``(F) the extent to which the per-unit cost of units
to be assisted under this section will be supplemented
with resources from other public and private
sources;''.
(e) Tenant Protections and Eligibility for Occupancy.--Section 811 is
amended by striking subsection (i) and inserting the following new
subsection:
``(i) Admission and Occupancy.--
``(1) Tenant selection.--
``(A) Procedures.--An owner shall adopt written
tenant selection procedures that are satisfactory to
the Secretary as (i) consistent with the purpose of
improving housing opportunities for very low-income
persons with disabilities; and (ii) reasonably related
to program eligibility and an applicant's ability to
perform the obligations of the lease. Owners shall
promptly notify in writing any rejected applicant of
the grounds for any rejection.
``(B) Requirement for occupancy.--Occupancy in
dwelling units provided assistance under this section
shall be available only to persons with disabilities
and households that include at least one person with a
disability.
``(C) Availability.--Except only as provided in
subparagraph (D), occupancy in dwelling units in
housing provided with assistance under this section
shall be available to all persons with disabilities
eligible for such occupancy without regard to the
particular disability involved.
``(D) Limitation on occupancy.--Notwithstanding any
other provision of law, the owner of housing developed
under this section may, with the approval of the
Secretary, limit occupancy within the housing to
persons with disabilities who can benefit from the
supportive services offered in connection with the
housing.
``(2) Tenant protections.--
``(A) Lease.--The lease between a tenant and an owner
of housing assisted under this section shall be for not
less than one year, and shall contain such terms and
conditions as the Secretary shall determine to be
appropriate.
``(B) Termination of tenancy.--An owner may not
terminate the tenancy or refuse to renew the lease of a
tenant of a rental dwelling unit assisted under this
section except--
``(i) for serious or repeated violation of
the terms and conditions of the lease, for
violation of applicable Federal, State, or
local law, or for other good cause; and
``(ii) by providing the tenant, not less than
30 days before such termination or refusal to
renew, with written notice specifying the
grounds for such action.
``(C) Voluntary participation in services.--A
supportive service plan for housing assisted under this
section shall permit each resident to take
responsibility for choosing and acquiring their own
services, to receive any supportive services made
available directly or indirectly by the owner of such
housing, or to not receive any supportive services.''.
(f) Development Cost Limitations.--Subsection (h) of section 811 is
amended--
(1) in paragraph (1)--
(A) by striking the paragraph heading and inserting
``Group homes'';
(B) in the first sentence, by striking ``various
types and sizes'' and inserting ``group homes'';
(C) by striking subparagraph (E); and
(D) by redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively;
(2) in paragraph (3), by inserting ``established pursuant to
paragraph (1)'' after ``cost limitation''; and
(3) by adding at the end the following new paragraph:
``(6) Applicability of home program cost limitations.--
``(A) In general.--The provisions of section 212(e)
of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12742(e)) and the cost limits
established by the Secretary pursuant to such section
with respect to the amount of funds under subtitle A of
title II of such Act that may be invested on a per unit
basis, shall apply to supportive housing assisted with
a capital advance under subsection (d)(1) and the
amount of funds under such subsection that may be
invested on a per unit basis.
``(B) Waivers.--The Secretary shall provide for
waiver of the cost limits applicable pursuant to
subparagraph (A)--
``(i) in the cases in which the cost limits
established pursuant to section 212(e) of the
Cranston-Gonzalez National Affordable Housing
Act may be waived; and
``(ii) to provide for--
``(I) the cost of special design
features to make the housing accessible
to persons with disabilities;
``(II) the cost of special design
features necessary to make individual
dwelling units meet the special needs
of persons with disabilities; and
``(III) the cost of providing the
housing in a location that is
accessible to public transportation and
community organizations that provide
supportive services to persons with
disabilities.''.
(g) Repeal of Authority To Waive Size Limitations.--Paragraph (1) of
section 811(k) is amended--
(1) in paragraph (1), by striking the second sentence; and
(2) in paragraph (4), by striking ``(or such higher number of
persons'' and all that follows through ``subsection (h)(6))''.
(h) Minimum Allocation for Multifamily Projects.--Subsection (l) of
section 811, as amended by the preceding provisions of this Act, is
further amended by inserting before paragraph (2) the following new
paragraph:
``(1) Minimum allocation for multifamily projects.--The
Secretary shall establish a minimum percentage of the amount
made available for each fiscal year for capital advances under
subsection (d)(1) that shall be used for multifamily projects
subject to subsection (e)(4).''.
SEC. 4. PROJECT RENTAL ASSISTANCE COMPETITIVE DEMONSTRATION PROGRAM.
Section 811, as amended by the preceding provisions of this Act, is
further amended--
(1) by redesignating subsections (k) through (n) as
subsections (l) through (o), respectively; and
(2) by inserting after subsection (j) the following new
subsection:
``(k) Project Rental Assistance-Only Competitive Demonstration
Program.--
``(1) Authority.--The Secretary shall carry out a
demonstration program under this subsection to expand the
supply of supportive housing for non-elderly adults with
disabilities, under which the Secretary shall make funds
available for project rental assistance pursuant to paragraph
(2) for eligible projects under paragraph (3). The Secretary
shall provide for State housing finance agencies and other
appropriate entities to apply to the Secretary for such project
rental assistance funds, which shall be made available by such
agencies and entities for dwelling units in eligible projects
based upon criteria established by the Secretary for the
demonstration program under this subsection. The Secretary may
not require any State housing finance agency or other entity
applying for project rental assistance funds under the
demonstration program to identify in such application the
eligible projects for which such funds will be used, and shall
allow such agencies and applicants to subsequently identify
such eligible projects pursuant to the making of commitments
described in paragraph (3)(B).
``(2) Project rental assistance.--
``(A) Contract terms.--Project rental assistance
under the demonstration program under this subsection
shall be provided--
``(i) in accordance with subsection (d)(2);
``(ii) under a contract having an initial
term of not less than 180 months that provides
funding for a term 60 months, which funding
shall be renewed upon expiration, subject to
the availability of sufficient amounts in
appropriation Acts.
``(B) Limitation on units assisted.--Of the total
number of dwelling units in any multifamily housing
project containing any unit for which project rental
assistance under the demonstration program under this
subsection is provided, the aggregate number that are
provided such project rental assistance, that are used
for supportive housing for persons with disabilities,
or to which any occupancy preference for persons with
disabilities applies, may not exceed 25 percent of such
total.
``(C) Prohibition of capital advances.--The Secretary
may not provide a capital advance under subsection
(d)(1) for any project for which assistance is provided
under the demonstration program.
``(D) Eligible population.--Project rental assistance
under the demonstration program under this subsection
may be provided only for dwelling units for extremely
low-income persons with disabilities and extremely low-
income households that include at least one person with
a disability.
``(3) Eligible projects.--An eligible project under this
paragraph is a new or existing multifamily housing project for
which--
``(A) the development costs are paid with resources
from other public or private sources; and
``(B) a commitment has been made--
``(i) by the applicable State agency
responsible for allocation of low-income
housing tax credits under section 42 of the
Internal Revenue Code of 1986, for an
allocation of such credits;
``(ii) by the applicable participating
jurisdiction that receives assistance under the
HOME Investment Partnership Act, for assistance
from such jurisdiction; or
``(iii) by any Federal agency or any State or
local government, for funding for the project
from funds from any other sources.
``(4) State agency involvement.--Assistance under the
demonstration may be provided only for projects for which the
applicable State agency responsible for health and human
services programs, and the applicable State agency designated
to administer or supervise the administration of the State plan
for medical assistance under title XIX of the Social Security
Act, have entered into such agreements as the Secretary
considers appropriate--
``(A) to identify the target populations to be served
by the project;
``(B) to set forth methods for outreach and referral;
and
``(C) to make available appropriate services for
tenants of the project.
``(5) Use requirements.--In the case of any project for which
project rental assistance is provided under the demonstration
program under this subsection, the dwelling units assisted
pursuant to paragraph (2) shall be operated for not less than
30 years as supportive housing for persons with disabilities,
in accordance with the application for the project approved by
the Secretary, and such dwelling units shall, during such
period, be made available for occupancy only by persons and
households described in paragraph (2)(D).
``(6) Report.--Upon the expiration of the 5-year period
beginning on the date of the enactment of the Frank Melville
Supportive Housing Investment Act of 2008, the Secretary shall
submit to the Congress a report describing the demonstration
program under this subsection, analyzing the effectiveness of
the program, including the effectiveness of the program
compared to the program for capital advances in accordance with
subsection (d)(1) (as in effect pursuant to the amendments made
by such Act), and making recommendations regarding future
models for assistance under this section based upon the
experiences under the program.''.
SEC. 5. TECHNICAL CORRECTIONS.
Section 811 is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2)--
(i) by striking ``provides'' and inserting
``makes available''; and
(ii) by striking the period at the end and
inserting ``; and'' ; and
(C) by adding at the end the following new paragraph:
``(3) promotes and facilitates community integration for
people with significant and long-term disabilities.'';
(2) in subsection (c)--
(A) in paragraph (1), by striking ``special'' and
inserting ``housing and community-based services''; and
(B) in paragraph (2)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) make available voluntary supportive services
that address the individual needs of persons with
disabilities occupying such housing;''; and
(ii) in subparagraph (B), by striking the
comma and inserting a semicolon;
(3) in subsection (d)(1), by striking ``provided under'' and
all that follows through ``shall bear'' and inserting
``provided pursuant to subsection (b)(1) shall bear'';
(4) in subsection (f)--
(A) in paragraph (3)--
(i) in subparagraph (B), by striking
``receive'' and inserting ``be offered'';
(ii) by striking subparagraph (C) and
inserting the following:
``(C) evidence of the applicant's experience in--
``(i) providing such supportive services; or
``(ii) creating and managing structured
partnerships with service providers for the
delivery of appropriate community-based
services;'';
(iii) in subparagraph (D), by striking ``such
persons'' and all that follows through
``provision of such services'' and inserting
``tenants''; and
(iv) in subparagraph (E), by inserting
``other Federal, and'' before ``State''; and
(B) in paragraph (4), by striking ``special'' and
inserting ``housing and community-based services'';
(5) in subsection (g), in paragraph (1) (as so redesignated
by section 3(c)(1) of this Act)--
(A) in subparagraph (D) (as so redesignated by
section 3(c)(2) of this Act), by striking ``the
necessary supportive services will be provided'' and
inserting ``appropriate supportive services will be
made available''; and
(B) by striking subparagraph (E) (as so redesignated
by section 3(c)(2) of this Act) and inserting the
following:
``(E) the extent to which the location and design of the
proposed project will facilitate the provision of community-
based supportive services and address other basic needs of
persons with disabilities, including access to appropriate and
accessible transportation, access to community services
agencies, public facilities, and shopping;'';
(6) in subsection (j)--
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5), (6), and (7) as
paragraphs (4), (5), and (6), respectively;
(7) in subsection (l) (as so redesignated by section 4(1) of
this Act)--
(A) in paragraph (1), by inserting before the period
at the end of the first sentence the following: ``,
which provides a separate bedroom for each tenant of
the residence'';
(B) by striking paragraph (2) and inserting the
following:
``(2)(A) The term `person with disabilities' means a person
who is 18 years of age or older and less than 62 years of age,
who--
``(i) has a disability as defined in section 223 of
the Social Security Act,
``(ii) is determined, pursuant to regulations issued
by the Secretary, to have a physical, mental, or
emotional impairment which--
``(I) is expected to be of long-continued and
indefinite duration;
``(II) substantially impedes his or her
ability to live independently; and
``(III) is of such a nature that such ability
could be improved by more suitable housing
conditions; or
``(iii) has a developmental disability as defined in
section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000.
``(B) Such term shall not exclude persons who have the
disease of acquired immunodeficiency syndrome or any conditions
arising from the etiologic agent for acquired immunodeficiency
syndrome. Notwithstanding any other provision of law, no
individual shall be considered a person with disabilities, for
purposes of eligibility for low-income housing under this
title, solely on the basis of any drug or alcohol dependence.
The Secretary shall consult with other appropriate Federal
agencies to implement the preceding sentence.
``(C) The Secretary shall prescribe such regulations as may
be necessary to prevent abuses in determining, under the
definitions contained in this paragraph, the eligibility of
families and persons for admission to and occupancy of housing
assisted under this section. Notwithstanding the preceding
provisions of this paragraph, the term `person with
disabilities' includes two or more persons with disabilities
living together, one or more such persons living with another
person who is determined (under regulations prescribed by the
Secretary) to be important to their care or well-being, and the
surviving member or members of any household described in
subparagraph (A) who were living, in a unit assisted under this
section, with the deceased member of the household at the time
of his or her death.'';
(C) by striking paragraph (3) and inserting the
following new paragraph:
``(3) The term `supportive housing for persons with
disabilities' means dwelling units that--
``(A) are designed to meet the permanent housing
needs of very low-income persons with disabilities; and
``(B) are located in housing that make available
supportive services that address the individual health,
mental health, or other needs of such persons.'';
(D) in paragraph (5), by striking ``a project for'';
and
(E) in paragraph (6)--
(i) by inserting after and below subparagraph
(D) the matter to be inserted by the amendment
made by section 841 of the American
Homeownership and Economic Opportunity Act of
2000 (Public Law 106-569; 114 Stat. 3022); and
(ii) in the matter inserted by the amendment
made by subparagraph (A) of this paragraph, by
striking ``wholly owned and''; and
(8) in subsection (m) (as so redesignated by section 4(1) of
this Act)--
(A) in paragraph (2), by striking ``subsection
(c)(1)'' and inserting ``subsection (d)(1)''; and
(B) in paragraph (3), by striking ``subsection
(c)(2)'' and inserting ``subsection (d)(2)''.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
Subsection (n) of section 811 (as so redesignated by section 4(1) of
this Act) is amended to read as follows:
``(n) Authorization of Appropriations.--There is authorized to be
appropriated for each of fiscal years 2008 through 2012 the following
amounts:
``(1) Capital advance/prac program.--For providing assistance
pursuant to subsection (b), such sums as may be necessary.
``(2) Demonstration program.--For carrying out the
demonstration program under subsection (k), such sums as may be
necessary to provide 2,500 incremental dwelling units under
such program in each of fiscal years 2008 and 2009 and 5,000
incremental dwelling units under such program in each of fiscal
years 2010, 2011, and 2012.''.
SEC. 7. NEW REGULATIONS AND PROGRAM GUIDANCE.
Not later than the expiration of the 180-day period beginning on the
date of the enactment of this Act, the Secretary of Housing and Urban
Development shall issue new regulations and guidance for the program
under section 811 of the Cranston-Gonzalez National Affordable Housing
Act for supportive housing for persons with disabilities to carry out
such program in accordance with the amendments made by this Act.
SEC. 8. GAO STUDY.
The Comptroller General of the United States shall conduct a study
of the supportive housing for persons with disabilities program under
section 811 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 8013) to determine the adequacy and effectiveness of such
program in assisting households of persons with disabilities. Such
study shall determine--
(1) the total number of households assisted under such
program;
(2) the extent to which households assisted under other
programs of the Department of Housing and Urban Development
that provide rental assistance or rental housing would be
eligible to receive assistance under such section 811 program;
and
(3) the extent to which households described in paragraph (2)
who are eligible for, but not receiving, assistance under such
section 811 program are receiving supportive services from, or
assisted by, the Department of Housing and Urban Development
other than through the section 811 program (including under the
Resident Opportunity and Self-Sufficiency program) or from
other sources.
Upon the completion of the study required under this section, the
Comptroller General shall submit a report to the Congress setting forth
the findings and conclusions of the study.
Purpose and Summary
H.R. 5772, the ``Frank Melville Supportive Housing
Investment Act of 2008'' amends section 811 of the Cranston-
Gonzalez National Affordable Housing Act (P.L. 101-625), which
established the Housing for Persons with Disabilities program.
The Section 811 program is the only Department of Housing and
Urban Development (HUD) permanent supportive housing program
exclusively serving persons with disabilities. The main goals
of the bill are to facilitate the use of mixed financing for
the more timely production of new developments and foster the
integration of housing for persons with disabilities, while
allowing residents to live independently. H.R. 5772 is designed
to accomplish these goals by amending the tenant-based rental
assistance component of the program, modernizing the capital
advance program and authorizing a rental assistance-only
demonstration program.
Background and Need for Legislation
The Section 811 Supportive Housing for Persons with
Disabilities program structure consists of three components:
(1) capital advances, (2) project rental assistance, and (3)
tenant-based rental assistance. HUD provides no-interest
capital advance grants to non-profit sponsors, to develop
rental housing, such as independent living facilities,
condominium units and groups homes which have available
supportive services for persons with disabilities. The capital
advance need not be repaid if the project serves very-low-
income persons with disabilities for not less than 40 years. In
connection with a capital advance, HUD provides project-based
assistance through the Project-Based Rental Assistance Contract
(PRAC), which covers the difference between the operating cost
and the amount residents pay in rent.
The program also provides for tenant-based vouchers, which
are available to families who are income eligible and include a
person with disabilities, to lease private rental housing.
Although the tenant-based voucher program was authorized under
the Housing and Community Development Act of 1992 (P.L. 102-
550), it was not funded until Fiscal Year 1997, at which time
it was established as a 25 percent set aside within the Section
811 appropriation. Vouchers are administered by Public Housing
Agencies and non-profit organizations. HUD did not establish a
tracking system to follow voucher recipients or ensure that
upon turnover the vouchers were reissued to families including
persons with disabilities until 2005. Because there is the
possibility that vouchers that were reissued by the public
housing agencies before the tracking system was implemented
were given to families who may not have included a person with
disabilities, H.R. 5772 transfers these vouchers to the Section
8 Housing Choice Voucher program, and requires HUD to develop
guidance to ensure that any existing and future appropriated
vouchers continue to serve eligible persons with disabilities.
As funding for the Section 811 and other supportive housing
programs has declined, grant applicants have been forced to
find additional or ``gap'' financing to cover the difference
between the grant and PRAC amounts and the full project cost of
developing new housing. At the Subcommittee on Housing and
Community Opportunity hearing on the bill on June 20, 2008, the
Subcommittee heard testimony from several witnesses on the
programmatic delays in processing new developments, including
those that raise ``gap'' financing. One witness stated that
grant processing can take over 2 years, in some cases causing
increased project costs of up to 25 percent. By transferring
grant processing through state housing finance agencies, H.R.
5772 encourages program sponsors to take full advantage other
financing options by removing costly delays at HUD and allowing
project to moreefficiently bring new projects online. In
addition, the modernized program removes disincentives for mixed
financing by providing preference in the grant selection criteria to
projects that will leverage the per-unit cost of units assisted with
other resources. H.R. 5772 also permits project sponsors seeking to
combine Section 811 program funds with other sources of financing to
apply certain conforming program requirements such as development costs
and use restrictions.
H.R. 5772 authorizes a project-based rental assistance-only
demonstration program (as opposed to the current program, which
provides project-based rental assistance in connection with a
capital advance grant). In the demonstration program, HUD
awards funds to state housing finance agencies, to enter into
contracts with project owners to provide project-based rental
assistance for units for persons with disabilities. Eligible
projects are new or existing projects which have received
capital funds from another private or public funding source and
have entered into agreement with the state or local agency
responsible for health and human services to assist in outreach
and make available appropriate services for tenants. Such
projects will be subject to a 25 percent limitation on the
percentage of units which may assist persons with disabilities,
whether assisted by the demonstration program, or a different
funding source.
In addition to amending the Section 811 program structure,
H.R. 5772 revises outdated program definitions and guidelines
to reflect the permanent housing and services needs of and
choices for persons with disabilities. The Committee believes
it is essential for HUD to issue new regulations and program
guidance to implement the amendments made by the bill to the
Section 811 program.
Hearings
The Subcommittee on Housing and Community Opportunity held
a hearing entitled ``H.R. 5772, the Frank Melville Supportive
Housing Investment Act of 2008'' on June 20, 2008. The
following witnesses testified:
Ms. Diane Randall, Executive Director, Partnership
for Strong Communities
Ms. Ann O'Hara, The Technical Assistance
Collaborative
Mr. Ronald S. Cohen, Ph.D., Chief Executive
Officer, United Cerebral Palsy of Los Angeles, Ventura & Santa
Barbara Counties
Mr. Mark Shelburne, North Carolina Housing Finance
Agency
Mr. Tony Paulauski, Executive Director, The Arc of
Illinois
Committee Consideration
The Committee on Financial Services met in open session on
July 30, 2008, and ordered H.R. 5772, the ``Frank Melville
Supportive Housing Investment Act of 2008'', as amended,
favorably reported by a voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken with in conjunction with the
consideration of this legislation. A motion by Mr. Frank to
report the bill, as amended, to the House with a favorable
recommendation was agreed to by a voice vote.
During the consideration of the bill, the following
amendment was considered:
An amendment by Mr. Murphy (CT), No. 1, regarding
identification of projects for demonstration program and
requiring a GAO study, was agreed to by a voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held a hearing and
made findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
H.R. 5772 amends section 811 of the Cranston-Gonzalez
National Affordable Housing Act (P.L. 101-625), which
established the Housing for Persons with Disabilities program.
The Section 811 program is the only HUD permanent supportive
housing program exclusively serving persons with disabilities.
The main goals of the bill are to facilitate the use of mixed
financing for the more timely production of new developments
and foster the integration of housing for persons with
disabilities, while allowing residents to live independently.
H.R. 5772 is designed to accomplish these goals by amending the
tenant-based rental assistance component of the program,
modernizing the capital advance program and authorizing a
rental assistance-only demonstration program.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 11, 2008.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5772, the Frank
Melville Supportive Housing Investment Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jessica
Sherry.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 5772--Frank Melville Supportive Housing Investment Act of 2008
Summary: H.R. 5772 would amend the Cranston-Gonzalez
National Affordable Housing Act to make changes to a housing
program that provides supportive housing for low-income persons
with disabilities.
CBO estimates that implementing H.R. 5772 would cost $652
million over the 2009-2013 period, assuming appropriation of
the necessary amounts. Enacting the bill would not affect
direct spending or revenues.
H.R. 5772 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA);
any costs to state, local, or tribal governments would be
incurred voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5772 is shown in the following table.
The costs of this legislation fall within budget function 600
(income security).
----------------------------------------------------------------------------------------------------------------
By fiscal year in millions of dollars--
--------------------------------------------------
2009 2010 2011 2012 2013 2009-2013
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Modernized Capital Advance Program:
Estimated Authorization Level............................ 167 170 173 176 0 686
Estimated Outlays........................................ 7 40 71 114 134 366
Renewal of Mainstream Tenant-Based Vouchers under Section 8
Program:
Estimated Authorization Level............................ 106 0 0 0 0 106
Estimated Outlays........................................ 92 14 0 0 0 106
Project Rental Assistance Competitive Demonstration Program:
Estimated Authorization Level............................ 11 33 55 79 0 178
Estimated Outlays........................................ 6 23 45 68 36 178
Delegated Processing Fees:
Estimated Authorization Level............................ 0 \1\ 1 1 0 2
Estimated Outlays........................................ 0 \1\ 1 1 \1\ 2
Total Changes:
Estimated Authorization Level............................ 284 203 229 256 0 972
Estimated Outlays........................................ 105 77 117 183 170 652
----------------------------------------------------------------------------------------------------------------
Note.-- \1\ = between zero and $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
5772 will be enacted near the start of fiscal year 2009, that
the necessary amounts will be appropriated each year, and that
outlays will follow historical spending patterns for existing
programs. (H.R. 5772 also would authorize appropriations in
2008 for supportive housing for the disabled; however, those
amounts are not included in this cost estimate because CBO
assumes that no further appropriations will be provided in 2008
for such programs.)
The Supportive Housing for Persons with Disabilities
program was established by the Cranston-Gonzalez National
Affordable Housing Act of 1990. The program currently makes
capital grants and project rental assistance available to
nonprofit entities to develop affordable housing for low-income
households headed by people with disabilities. In addition, the
program currently funds tenant-based vouchers for such
households. Prior to 1990, housing units for persons with
disabilities were made available under the Housing for the
Elderly program.
Modernized Capital Advance Program
Section 3 would authorize the appropriation of such sums as
necessary for each of fiscal years 2008 through 2012 for the
Capital Advance/Project Rental Assistance Contract program. In
2008, $162 million was made available for that program. Based
on data from the Department of Housing and Urban Development
(HUD) for current operations, and adjusting for inflation, CBO
estimates that implementing this section would cost $366
million over the 2009-2013 period, assuming appropriation of
the necessary amounts.
Renewal of mainstream tenant-based vouchers under Section 8 Program
Section 2 would transfer all current vouchers under the
supportive housing program and all future incremental vouchers
for people with disabilities to the Section 8 housing choice
voucher program. The bill would authorize the appropriation of
such sums as necessary in 2009 to provide funding for the
number of vouchers provided in fiscal year 2008 under the
current mainstream voucher program. In 2007, HUD provided about
15,000 vouchers at an average cost of $540 a month; the numbers
for 2008 are not yet available. Adjusting for inflation, CBO
estimates that providing the same number of vouchers in 2009
would cost $106 million over the 2007-2010 period, assuming
appropriation of the necessary amounts.
Project Rental Assistance Competitive Demonstration Program
Section 4 would authorize a new demonstration program for
project-based assistance to subsidize housing units developed
with funds not provided under the supportive housing program,
including units developed through the Low-Income Housing Tax
Credit and the HOME Investment Partnerships Program.
Specifically, the bill would authorize the appropriation of
such sums as may be necessary to provide 2,500 incremental
dwelling units in each of fiscal years 2008 and 2009 and 5,000
incremental dwelling units in each of fiscal years 2010, 2011,
and 2012. Based on information from HUD, CBO estimates that
beginning in 2009, 2,500 units would receive such rental
assistance at an average cost of about $4,200 per unit,
reaching a cumulative total of 17,500 units in 2012. Assuming
appropriation of the necessary amounts, CBO estimates that
providing such assistance to the tenants of those properties
would cost $178 million over the 2009-2013 period.
Delegated processing fees
Section 3 also would require HUD to delegate the processing
of certain capital grants to interested state or local housing
agencies. The provision would direct HUD to develop a schedule
of reasonable fees to be paid to the delegated processing
agencies and would allow the fees to be included as part of the
total capital grant amount. Based on information provided by
HUD, industry groups, and state agencies, CBO estimates that
paying those fees would cost $2 million over the 2009-2013
period, assuming availability of the necessary amounts.
Intergovernmental and private-sector impact: H.R. 5772
contains no intergovernmental or private-sector mandates as
defmed in UMRA. The bill would benefit state, local, and tribal
governments that participate in affordable housing projects and
programs. Any costs those governments incur to comply with
program requirements would be incurred voluntarily.
Estimate prepared by: Federal Spending: Jessica Sherry;
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum; Impact on the Private Sector: Patrick Bernhardt.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 5772 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section establishes the short title of the bill, the
``Frank Melville Supportive Housing Investment Act of 2008.''
Section 2. Tenant-based rental assistance through certificate fund
This section transfers all existing tenant-based Mainstream
vouchers and any future incremental vouchers for persons with
disabilities to the Section 8 Housing Choice Voucher program.
Additionally, the section provides protections to ensure that
upon the turnover of these vouchers, they continue to serve
persons with disabilities.
Mainstream Tenant-Based Assistance. Authorizes
appropriations for tenant-based assistance under the Section 8
rental assistance program for low-income persons with
disabilities in the amount necessary to provide incremental
vouchers for all persons previously assisted under the
Mainstream Tenant-Based Rental Assistance in 2008, as well as
the renewal of incremental vouchers for non-elderly disabled
households, pursuant to appropriations acts for FY 1997-2002.
Requires the Secretary to develop and issue guidance to public
housing agencies to ensure that such vouchers continue to be
provided to qualified persons with disabilities.
Section 3. Modernized capital advance program
This section makes a number of changes to the program to
encourage integration and mixed-use developments, as well as
facilitating the use of other sources of financing, such as Low
Income Housing Tax Credits and HOME program funds.
Project Rental Assistance Contracts. Requires the
Secretary, upon renewal of a project-based rental assistance
contract, to adjust the annual contract amount to provide for
reasonable cost increases, including adequate reserves and
service coordinators, as well as for emergency situations
beyond the control of the owner. Lengthens the initial rental
assistance contract term for projects assisted with any low-
income housing tax credits or bonds from 20 to 30 years,
allowing such projects to more closely conform to the Low
Income Housing Tax Credit (LIHTC) program.
Use Restrictions. Retains the current 40-year term during
which the project must continue to be operated as supportive
housing for persons with disabilities. Permits owners of
supportive housing projects, with the approval of the
Secretary, to convert projects for the direct benefit of very
low-income persons, if the Secretary determines that the
project is no longer needed for supportive housing. Prohibits
the use of funds to replace State or local funds previously
used to assist persons with disabilities.
Multifamily Projects. Establishes a limitation on the
overall percentage of units in a multifamily project funded by
a capital advance, which are not group homes or independent
living facilities, which may be provided for persons with
disabilities.
Delegated Processing. Requires delegated processing for
multifamily 811 projects which combine capital advance funds
with othersources of financing and that have already been
approved by HUD, for the purpose of issuing a capital advance, to a
state or local agency which (a) is in geographic proximity to the
property, (b) has demonstrated experience in underwriting multifamily
housing loans that provide housing and supportive services, (c) may or
may not be providing LIHTC in combination with the 811 capital advance
and (d) agrees to issue a firm commitment within 12 months of
delegation. Retains the Secretary's authority to process capital
advances where no State or local housing finance agency has applied.
Waives the delegated underwriting requirement where no State or local
agency has applied to provide delegated underwriting. Permits the State
or local agency to charge a reasonable fee for processing, which will
be included in the capital advance amount. Requires the Secretary to
develop a schedule for reasonable fees to be paid for delegated
underwriting. Confirms HUD Secretary's authority to approve rents and
development costs and requires that the Secretary execute a capital
advance within 60 days of receipt of commitment.
Leveraging Other Resources. Amends the selection criteria
to give preference to projects that will leverage the per-unit
cost of units assisted with other public or private resources.
Tenant Protections and Eligibility for Occupancy. Tenant
Selection: Requires owners to develop written tenant selection
procedures which, in the determination of the Secretary, are
consistent with the purpose of improving housing opportunities
for very low-income persons with disabilities and reasonably
related to program eligibility and the applicant's ability to
perform the obligations of the lease. Limits occupancy to
persons with disabilities and households that include at least
one person with a disability. Makes units available to eligible
persons with disabilities without regard to particular
disability involved. Permits an owner to limit occupancy within
a project to persons with disabilities who can benefit from the
supportive services offered in connection with the housing.
Tenant Protections. Establishes a 1-year lease. Prohibits
the owner from terminating a lease, except in cases in which a
tenant has seriously or repeatedly violated the terms and
conditions of the lease, violated applicable Federal, State or
local law, or for other good cause, and the owner has provided
the tenant with written notice specifying the grounds of
termination, 30 days prior to termination. Permits residents to
choose and acquire available services for independent living
facilities and multifamily housing.
Development Cost Limitations. Limits current program
development cost limitations to group homes, only. Adopts the
HOME program development cost limitations on funds invested on
a per-unit basis. Provides waivers of cost limitations in cases
in which the cost limits may be waived to provide for the cost
of special design features to make housing accessible, the cost
of special design features necessary to make individual
dwelling units meet the special needs of persons with
disabilities and the cost of providing the housing in a
location that is accessible to public transportation and
community organizations that provide supportive services.
Repeal of Authority To Waive Size Limitations. Repeals the
authority of the Secretary to waive the size limitations on
group homes and independent living facilities.
Minimum Allocation for Multifamily Projects. Requires the
Secretary to establish a minimum percentage of capital advance
funds to be used for multifamily projects.
Section 4. Project Rental Assistance Competitive Demonstration Program
This section authorizes a demonstration program in which
projects will be awarded project-based rental assistance
contracts only and not new construction capital advance grants.
These project-based units will be within larger multifamily
housing projects and are intended to facilitate the creation of
mixed-use housing.
Authority. Requires the Secretary to make available project
rental assistance funds to State and local financing agencies
and other appropriate agencies to carry out a demonstration
program to provide dwelling units in eligible projects.
Project-Rental Assistance. Requires the Secretary to make
monthly rental assistance payments to projects for an initial
contract term of 15 years, with 5-year renewals. Limits the
number of reserved for persons with disabilities in projects to
no more than 25 percent of the total number of units in such
project, in projects assisted under this demonstration program.
Prohibits the provision of capital advance grant funds for any
project which receives assistance under the demonstration
program. Limits the eligible occupants of units assisted under
the demonstration to extremely low-income persons with
disabilities.
Eligible Projects. Establishes the eligibility of projects
as a new or existing multifamily housing project for which the
development costs are paid with resources from other public or
private sources and a commitment had been made (a) by the State
HFA for the allocation of tax credits, (b) by the applicable
participating jurisdiction for HOMEassistance, or (c) any other
Federal, State or local funding for the project from other sources.
State Agency Involvement. Limits project eligibility to
projects for which the State agency responsible for health and
human services program, and the State agency designated to
administer Medicaid assistance have entered into such
agreements (a) to identify and target populations to be served
by project, (b) to set forth methods for outreach and referral,
and (c) to make available appropriate services for tenants of
the project.
Use Requirements. Requires all dwelling units assisted
under this demonstration program will be operated as supportive
housing for persons with disabilities for 30 years, for
extremely low-income persons with disabilities.
Report. Requires the Secretary to submit to Congress 5
years after the enactment of this act, describing the
demonstration program, its effectiveness and any
recommendations regarding future models for assist under this
act.
Section 5. Technical corrections
This section makes technical corrections to the statute to
clarify and amend certain program guidelines and definitions.
Amends the purpose of the program to include the promotion
and facilitation of community integration for persons with
significant and long-term disabilities; the application
requirements for supportive service plans; and the project
selection criteria to encourage the use of locations that will
facilitate the provision of services and other basic needs.
Eliminates the owner deposit requirement.
Revises the definition of Group Home to require a separate
bedroom for each tenant. Revises the definition of persons with
disabilities to apply to persons between 18 and 62 years of
age, who has a disability as defined in section 223 of the
Social Security Act and is determined, pursuant to regulations
issued by the Secretary, to have a physical, mental or
emotional impairment, which (a) is expected to be of a long-
continued and indefinite duration, (b) substantially impedes
his or her ability to live independently, and (c) is of such a
nature that such ability could be improved by more suitable
housing conditions, or has a developmental disability as
defined in section 102 of the Development Disabilities
Assistance and Bill of Rights Act of 2000. Confirms that
persons with AIDS are not excluded by this definition.
Clarifies that individuals shall not be considered persons with
disabilities under this definition, based solely on drug or
alcohol dependence. Requires the Secretary to prescribe
regulations to implement this definition and to prevent abuses
in determining eligibility of households. Revises the
definition of ``supportive housing for persons with
disabilities'' to dwelling units that are designed to meet the
permanent housing needs of very low-income persons with
disabilities and make available supportive services that
address the individual health, mental health, or other needs of
such persons.
Section 6. Authorization of appropriations
Authorizes an appropriation of such sums as may be
necessary for the capital advance/project rental assistance
contract. Authorizes such sums as may be necessary for the
demonstration program to provide for 2,500 incremental dwelling
units under such program for 2008 and 2009 and 5,000
incremental dwelling units under the demonstration program for
fiscal years 2010, 2011 and 2012.
Section 7. New regulations and program guidance
Requires the Secretary to issue implementing regulations
within 180 days of enactment.
Section 8. GAO study
Directs GAO to assess the number of households assisted by
the Section 811 Supportive Housing for Persons with
Disabilities program, the number of Section 811-eligible
households currently living in other HUD-assisted housing, and
the extent to which those households have access to supportive
services.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT
* * * * * * *
TITLE VIII--HOUSING FOR PERSONS WITH SPECIAL NEEDS
* * * * * * *
Subtitle B--Supportive Housing for Persons With Disabilities
SEC. 811. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.
(a) Purpose.--The purpose of this section is to enable
persons with disabilities to live with dignity and independence
within their communities by expanding the supply of supportive
housing that--
(1) is designed to accommodate the special needs of
such persons; [and]
(2) [provides] makes available supportive services
that address the individual health, mental health, and
other needs of such persons[.]; and
(3) promotes and facilitates community integration
for people with significant and long-term disabilities.
[(b) Authority to provide assistance.--The Secretary is
authorized--
[(1) to provide tenant-based rental assistance to eligible
persons with disabilities, in accordance with subsection
(d)(4); and
[(2) to provide assistance to private, nonprofit
organizations to expand the supply of supportive housing for
persons with disabilities, which shall be provided as--
[(A) capital advances in accordance with subsection
(d)(1), and
[(B) contracts for project rental assistance in
accordance with subsection (d)(2);]
(b) Authority To Provide Assistance.--The Secretary is
authorized to provide assistance to private nonprofit
organizations to expand the supply of supportive housing for
persons with disabilities, which shall be provided as--
(1) capital advances in accordance with subsection
(d)(1), and
(2) contracts for project rental assistance in
accordance with subsection (d)(2).
[assistance under this paragraph] Assistance under this
subsection may be used to finance the acquisition, acquisition
and moderate rehabilitation, construction, reconstruction, or
moderate or substantial rehabilitation of housing, including
the acquisition from the Resolution Trust Corporation, to be
used as supportive housing for persons with disabilities and
may include real property acquisition, site improvement,
conversion, demolition, relocation, and other expenses that the
Secretary determines are necessary to expand the supply of
supportive housing for persons with disabilities.
(c) General Requirements.--The Secretary shall take such
actions as may be necessary to ensure that--
(1) assistance made available under this section will
be used to meet the [special] housing and community-
based services needs of persons with disabilities by
providing a variety of housing options, ranging from
group homes and independent living facilities to
dwelling units in multifamily housing developments,
condominium housing, and cooperative housing; and
(2) supportive housing for persons with disabilities
assisted under this section shall--
[(A) provide persons with disabilities
occupying such housing with supportive services
that address their individual needs;]
(A) make available voluntary supportive
services that address the individual needs of
persons with disabilities occupying such
housing;
(B) provide such persons with opportunities
for optimal independent living and
participation in normal daily activities[,];
and
* * * * * * *
(d) Forms of Assistance.--
(1) Capital advances.--A capital advance [provided
under this section shall bear] provided pursuant to
subsection (b)(1) shall bear no interest and its
repayment shall not be required so long as the housing
remains available for very-low-income persons with
disabilities in accordance with this section. Such
advance shall be in an amount calculated in accordance
with the development cost limitation established in
subsection (h).
(2) Project rental assistance.--(A) Initial project
rental assistance contract.--Contracts for project
rental assistance shall comply with subsection (e)(2)
and shall obligate the Secretary to make monthly
payments to cover any part of the costs attributed to
units occupied (or, as approved by the Secretary, held
for occupancy) by very low-income persons with
disabilities that is not met from project income. The
[annual contract amount] amount provided under the
contract for each year covered by the contract for any
project shall not exceed the sum of the initial annual
project rentals for all units and any initial utility
allowances for such units, as approved by the
Secretary. Any contract amounts not used by a project
in any year shall remain available to the project until
the expiration of the contract. The Secretary may
adjust the [annual contract amount] amount provided
under the contract for each year covered by the
contract if the sum of the project income and the
amount of assistance payments available under this
paragraph are inadequate to provide for reasonable
project costs. In the case of an intermediate care
facility which is the residence of persons assisted
under title XIX of the Social Security Act, project
income under this paragraph shall include the same
amount as if such person were being assisted under
title XVI of the Social Security Act.
(B) Renewal of and increases in contract amounts.--
(i) Expiration of contract term.--Upon the
expiration of each contract term, subject to
the availability of amounts made available in
appropriation Acts, the Secretary shall adjust
the annual contract amount to provide for
reasonable project costs, and any increases,
including adequate reserves and service
coordinators, except that any contract amounts
not used by a project during a contract term
shall not be available for such adjustments
upon renewal.
(ii) Emergency situations.--In the event of
emergency situations that are outside the
control of the owner, the Secretary shall
increase the annual contract amount, subject to
reasonable review and limitations as the
Secretary shall provide.
* * * * * * *
[(4) Tenant-based rental assistance.--
[(A) Administering entities.--Tenant-based
rental assistance provided under subsection
(b)(1) may be provided only through a public
housing agency that has submitted and had
approved a plan under section 7(d) of the
United States Housing Act of 1937 (42 U.S.C.
1437e(d)) that provides for such assistance, or
through a private nonprofit organization. A
public housing agency shall be eligible to
apply under this section only for the purposes
of providing such tenant-based rental
assistance.
[(B) Program rules.--Tenant-based rental
assistance under subsection (b)(1) shall be
made available to eligible persons with
disabilities and administered under the same
rules that govern tenant-based rental
assistance made available under section 8 of
the United States Housing Act of 1937, except
that the Secretary may waive or modify such
rules, but only to the extent necessary to
provide for administering such assistance under
subsection (b)(1) through private nonprofit
organizations rather than through public
housing agencies.
[(C) Allocation of assistance.--In
determining the amount of assistance provided
under subsection (b)(1) for a private nonprofit
organization or public housing agency, the
Secretary shall consider the needs and
capabilities of the organization or agency, in
the case of a public housing agency, as
described in the plan for the agency under
section 7 of the United States Housing Act of
1937.]
(e) [Term of Commitment] Program Requirements.--
[(1) Use limitations.--All units in housing assisted
under subsection (b)(2) shall be made available for
occupancy by very low-income persons with disabilities
for not less than 40 years.]
(1) Use restrictions.--
(A) Term.--Any project for which a capital
advance is provided under subsection (d)(1)
shall be operated for not less than 40 years as
supportive housing for persons with
disabilities, in accordance with the
application for the project approved by the
Secretary and shall, during such period, be
made available for occupancy only by very low-
income persons with disabilities.
(B) Conversion.--If the owner of a project
requests the use of the project for the direct
benefit of very low-income persons with
disabilities and, pursuant to such request the
Secretary determines that a project is no
longer needed for use as supportive housing for
persons with disabilities, the Secretary may
approve the request and authorize the owner to
convert the project to such use.
(2) Contract terms.--The initial term of a contract
entered into under subsection (d)(2) shall be 240
months, except that, in the case of the sponsor of a
project assisted with any low-income housing tax credit
pursuant to section 42 of the Internal Revenue Code of
1986 or with any tax-exempt housing bonds, the contract
shall have an initial term of not be less than 360
months and shall provide funding for a term of 60
months. The Secretary shall, to the extent approved in
appropriation Acts, [extend any expiring contract] upon
expiration of a contract (or any renewed contract),
renew such contract for a term of not less than 60
months. In order to facilitate the orderly extension of
expiring contracts, the Secretary is authorized to make
commitments to extend expiring contracts during the
year prior to the date of expiration.
(3) Limitation on use of funds.--No assistance
received under this section (or any State or local
government funds used to supplement such assistance)
may be used to replace other State or local funds
previously used, or designated for use, to assist
persons with disabilities.
(4) Multifamily projects.--
(A) Limitation.--Except as provided in
subparagraph (B), of the total number of
dwelling units in any multifamily housing
project (including any condominium or
cooperative housing project) containing any
unit for which assistance is provided from a
capital grant under subsection (d)(1) made
after the date of the enactment of the Frank
Melville Supportive Housing Investment Act of
2008, the aggregate number that are used for
persons with disabilities, including supportive
housing for persons with disabilities, or to
which any occupancy preference for persons with
disabilities applies, may not exceed 25 percent
of such total.
(B) Exception.--Subparagraph (A) shall not
apply in the case of any project that is a
group home or independent living facility.
(f) Applications.--Funds made available under subsection
(b)(2) shall be allocated by the Secretary among approvable
applications submitted by private nonprofit organizations.
Applications for assistance under subsection (b)(2) shall be
submitted in such form and in accordance with such procedures
as the Secretary shall establish. Such applications shall
contain--
(1) * * *
* * * * * * *
(3) a supportive service plan that contains--
(A) * * *
(B) assurances that persons with disabilities
occupying such housing will [receive] be
offered supportive services based on their
individual needs;
[(C) evidence of the applicant's (or a
designated service provider's) experience in
providing such supportive services;]
(C) evidence of the applicant's experience
in--
(i) providing such supportive
services; or
(ii) creating and managing structured
partnerships with service providers for
the delivery of appropriate community-
based services;
(D) a description of the manner in which such
services will be provided to [such persons,
including evidence of such residential
supervision as the Secretary determines is
necessary to facilitate the adequate provision
of such services] tenants; and
(E) identification of the extent of other
Federal, and State and local funds available to
assist in the provision of such services;
(4) a certification from the appropriate State or
local agency (as determined by the Secretary) that the
provision of the services identified in paragraph (3)
are well designed to serve the [special] housing and
community-based services needs of persons with
disabilities;
* * * * * * *
(g) [Selection Criteria.--] Selection Criteria and
Processing.--(1) Selection Criteria.--The Secretary shall
establish selection criteria for assistance under this section,
which shall include--
[(1)] (A) the ability of the applicant to develop and
operate the proposed housing;
[(2)] (B) the need for housing for persons with
disabilities in the area to be served;
[(3)] (C) the extent to which the proposed design of
the housing will meet the special needs of persons with
disabilities;
[(4)] (D) the extent to which the applicant has
demonstrated that [the necessary supportive services
will be provided] appropriate supportive services will
be made available on a consistent, long-term basis;
[(5) the extent to which the proposed design of the
housing will accommodate the provision of such
services;]
(E) the extent to which the location and design of
the proposed project will facilitate the provision of
community-based supportive services and address other
basic needs of persons with disabilities, including
access to appropriate and accessible transportation,
access to community services agencies, public
facilities, and shopping;
(F) the extent to which the per-unit cost of units to
be assisted under this section will be supplemented
with resources from other public and private sources;
[(6)] (G) the extent to which the applicant has
control of the site of the proposed housing; and
[(7)] (H) such other factors as the Secretary
determines to be appropriate to ensure that funds made
available under this section are used effectively.
(2) Delegated processing.--
(A) In issuing a capital advance under subsection
(d)(1) for any multifamily project (but not including
any project that is a group home or independent living
facility) for which financing for the purposes
described in the last sentence of subsection (b) is
provided by a combination of the capital advance and
sources other than this section, within 30 days of
award of the capital advance, the Secretary shall
delegate review and processing of such projects to a
State or local housing agency that--
(i) is in geographic proximity to the
property;
(ii) has demonstrated experience in and
capacity for underwriting multifamily housing
loans that provide housing and supportive
services;
(iii) may or may not be providing low-income
housing tax credits in combination with the
capital advance under this section; and
(iv) agrees to issue a firm commitment within
12 months of delegation.
(B) The Secretary shall retain the authority to
process capital advances in cases in which no State or
local housing agency has applied to provide delegated
processing pursuant to this paragraph or no such agency
has entered into an agreement with the Secretary to
serve as a delegated processing agency.
(C) An agency to which review and processing is
delegated pursuant to subparagraph (A) may assess a
reasonable fee which shall be included in the capital
advance amounts and may recommend project rental
assistance amounts in excess of those initially awarded
by the Secretary. The Secretary shall develop a
schedule for reasonable fees under this subparagraph to
be paid to delegated processing agencies, which shall
take into consideration any other fees to be paid to
the agency for other funding provided to the project by
the agency, including bonds, tax credits, and other gap
funding.
(D) Under such delegated system, the Secretary shall
retain the authority to approve rents and development
costs and to execute a capital advance within 60 days
of receipt of the commitment from the State or local
agency. The Secretary shall provide to such agency and
the project sponsor, in writing, the reasons for any
reduction in capital advance amounts or project rental
assistance and such reductions shall be subject to
appeal.
(h) Development Cost Limitations.--
(1) [In general] Group homes.--The Secretary shall
periodically establish development cost limitations by
market area for [various types and sizes] group homes
of supportive housing for persons with disabilities by
publishing a notice of the cost limitations in the
Federal Register. The cost limitations shall reflect--
(A) * * *
* * * * * * *
[(E) the cost of congregate space necessary
to accommodate the provision of supportive
services to persons with disabilities;]
[(F)] (E) if the housing is newly
constructed, the cost of meeting the energy
efficiency standards promulgated by the
Secretary in accordance with section 109 of the
Cranston-Gonzalez National Affordable Housing
Act; and
[(G)] (F) the cost of land, including
necessary site improvement.
* * * * * * *
(3) Annual adjustments.--The Secretary shall adjust
the cost limitation established pursuant to paragraph
(1) not less than once annually to reflect changes in
the general level of acquisition, construction,
reconstruction, or rehabilitation costs.
* * * * * * *
(6) Applicability of home program cost limitations.--
(A) In general.--The provisions of section
212(e) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(e)) and
the cost limits established by the Secretary
pursuant to such section with respect to the
amount of funds under subtitle A of title II of
such Act that may be invested on a per unit
basis, shall apply to supportive housing
assisted with a capital advance under
subsection (d)(1) and the amount of funds under
such subsection that may be invested on a per
unit basis.
(B) Waivers.--The Secretary shall provide for
waiver of the cost limits applicable pursuant
to subparagraph (A)--
(i) in the cases in which the cost
limits established pursuant to section
212(e) of the Cranston-Gonzalez
National Affordable Housing Act may be
waived; and
(ii) to provide for--
(I) the cost of special
design features to make the
housing accessible to persons
with disabilities;
(II) the cost of special
design features necessary to
make individual dwelling units
meet the special needs of
persons with disabilities; and
(III) the cost of providing
the housing in a location that
is accessible to public
transportation and community
organizations that provide
supportive services to persons
with disabilities.
[(i) Tenant Selection.--(1) An owner shall adopt written
tenant selection procedures that are satisfactory to the
Secretary as (A) consistent with the purpose of improving
housing opportunities for very low-income persons with
disabilities; and (B) reasonably related to program eligibility
and an applicant's ability to perform the obligations of the
lease. Owners shall promptly notify in writing any rejected
applicant of the grounds for any rejection.
[(2) Notwithstanding any other provision of law, an owner
may, with the approval of the Secretary, limit occupancy within
housing developed under this section to persons with
disabilities who have similar disabilities and require a
similar set of supportive services in a supportive housing
environment.]
(i) Admission and Occupancy.--
(1) Tenant selection.--
(A) Procedures.--An owner shall adopt written
tenant selection procedures that are
satisfactory to the Secretary as (i) consistent
with the purpose of improving housing
opportunities for very low-income persons with
disabilities; and (ii) reasonably related to
program eligibility and an applicant's ability
to perform the obligations of the lease. Owners
shall promptly notify in writing any rejected
applicant of the grounds for any rejection.
(B) Requirement for occupancy.--Occupancy in
dwelling units provided assistance under this
section shall be available only to persons with
disabilities and households that include at
least one person with a disability.
(C) Availability.--Except only as provided in
subparagraph (D), occupancy in dwelling units
in housing provided with assistance under this
section shall be available to all persons with
disabilities eligible for such occupancy
without regard to the particular disability
involved.
(D) Limitation on occupancy.--Notwithstanding
any other provision of law, the owner of
housing developed under this section may, with
the approval of the Secretary, limit occupancy
within the housing to persons with disabilities
who can benefit from the supportive services
offered in connection with the housing.
(2) Tenant protections.--
(A) Lease.--The lease between a tenant and an
owner of housing assisted under this section
shall be for not less than one year, and shall
contain such terms and conditions as the
Secretary shall determine to be appropriate.
(B) Termination of tenancy.--An owner may not
terminate the tenancy or refuse to renew the
lease of a tenant of a rental dwelling unit
assisted under this section except--
(i) for serious or repeated violation
of the terms and conditions of the
lease, for violation of applicable
Federal, State, or local law, or for
other good cause; and
(ii) by providing the tenant, not
less than 30 days before such
termination or refusal to renew, with
written notice specifying the grounds
for such action.
(C) Voluntary participation in services.--A
supportive service plan for housing assisted
under this section shall permit each resident
to take responsibility for choosing and
acquiring their own services, to receive any
supportive services made available directly or
indirectly by the owner of such housing, or to
not receive any supportive services.
(j) Miscellaneous Provisions.--
(1) * * *
* * * * * * *
[(4) Owner deposit.--The Secretary may require an
owner to deposit an amount not to exceed $10,000 in a
special escrow account to assure the owner's commitment
to the housing.]
[(5)] (4) Notice of appeal.--The Secretary shall
notify an owner not less than 30 days prior to
canceling any reservation of assistance provided under
this section. During the 30-day period following the
receipt of a notice under the preceding sentence, an
owner may appeal the proposed cancellation. Such
appeal, including review by the Secretary, shall be
completed not later than 45 days after the appeal is
filed.
[(6)] (5) Labor standards.--
(A) * * *
* * * * * * *
[(7)] (6) Use of project reserves.--Amounts for
project reserves for a project assisted under this
section may be used for costs, subject to reasonable
limitations as the Secretary determines appropriate,
for reducing the number of dwelling units in the
project. Such use shall be subject to the approval of
the Secretary to ensure that the use is designed to
retrofit units that are currently obsolete or
unmarketable.
(k) Project Rental Assistance-Only Competitive Demonstration
Program.--
(1) Authority.--The Secretary shall carry out a
demonstration program under this subsection to expand
the supply of supportive housing for non-elderly adults
with disabilities, under which the Secretary shall make
funds available for project rental assistance pursuant
to paragraph (2) for eligible projects under paragraph
(3). The Secretary shall provide for State housing
finance agencies and other appropriate entities to
apply to the Secretary for such project rental
assistance funds, which shall be made available by such
agencies and entities for dwelling units in eligible
projects based upon criteria established by the
Secretary for the demonstration program under this
subsection. The Secretary may not require any State
housing finance agency or other entity applying for
project rental assistance funds under the demonstration
program to identify in such application the eligible
projects for which such funds will be used, and shall
allow such agencies and applicants to subsequently
identify such eligible projects pursuant to the making
of commitments described in paragraph (3)(B).
(2) Project rental assistance.--
(A) Contract terms.--Project rental
assistance under the demonstration program
under this subsection shall be provided--
(i) in accordance with subsection
(d)(2);
(ii) under a contract having an
initial term of not less than 180
months that provides funding for a term
60 months, which funding shall be
renewed upon expiration, subject to the
availability of sufficient amounts in
appropriation Acts.
(B) Limitation on units assisted.--Of the
total number of dwelling units in any
multifamily housing project containing any unit
for which project rental assistance under the
demonstration program under this subsection is
provided, the aggregate number that are
provided such project rental assistance, that
are used for supportive housing for persons
with disabilities, or to which any occupancy
preference for persons with disabilities
applies, may not exceed 25 percent of such
total.
(C) Prohibition of capital advances.--The
Secretary may not provide a capital advance
under subsection (d)(1) for any project for
which assistance is provided under the
demonstration program.
(D) Eligible population.--Project rental
assistance under the demonstration program
under this subsection may be provided only for
dwelling units for extremely low-income persons
with disabilities and extremely low-income
households that include at least one person
with a disability.
(3) Eligible projects.--An eligible project under
this paragraph is a new or existing multifamily housing
project for which--
(A) the development costs are paid with
resources from other public or private sources;
and
(B) a commitment has been made--
(i) by the applicable State agency
responsible for allocation of low-
income housing tax credits under
section 42 of the Internal Revenue Code
of 1986, for an allocation of such
credits;
(ii) by the applicable participating
jurisdiction that receives assistance
under the HOME Investment Partnership
Act, for assistance from such
jurisdiction; or
(iii) by any Federal agency or any
State or local government, for funding
for the project from funds from any
other sources.
(4) State agency involvement.--Assistance under the
demonstration may be provided only for projects for
which the applicable State agency responsible for
health and human services programs, and the applicable
State agency designated to administer or supervise the
administration of the State plan for medical assistance
under title XIX of the Social Security Act, have
entered into such agreements as the Secretary considers
appropriate--
(A) to identify the target populations to be
served by the project;
(B) to set forth methods for outreach and
referral; and
(C) to make available appropriate services
for tenants of the project.
(5) Use requirements.--In the case of any project for
which project rental assistance is provided under the
demonstration program under this subsection, the
dwelling units assisted pursuant to paragraph (2) shall
be operated for not less than 30 years as supportive
housing for persons with disabilities, in accordance
with the application for the project approved by the
Secretary, and such dwelling units shall, during such
period, be made available for occupancy only by persons
and households described in paragraph (2)(D).
(6) Report.--Upon the expiration of the 5-year period
beginning on the date of the enactment of the Frank
Melville Supportive Housing Investment Act of 2008, the
Secretary shall submit to the Congress a report
describing the demonstration program under this
subsection, analyzing the effectiveness of the program,
including the effectiveness of the program compared to
the program for capital advances in accordance with
subsection (d)(1) (as in effect pursuant to the
amendments made by such Act), and making
recommendations regarding future models for assistance
under this section based upon the experiences under the
program.
[(k)] (l) Definitions.--As used in this section--
(1) The term ``group home'' means a single family
residential structure designed or adapted for occupancy
by not more than 8 persons with disabilities, which
provides a separate bedroom for each tenant of the
residence. [The Secretary may waive the project size
limitation contained in the previous sentence if the
applicant demonstrates that local market conditions
dictate the development of a larger project.] Not more
than 1 home may be located on any one site and no such
home may be located on a site contiguous to another
site containing such a home.
[(2) The term ``person with disabilities'' means a
household composed of one or more persons at least one
of whom is an adult who has a disability. A person
shall be considered to have a disability if such person
is determined, pursuant to regulations issued by the
Secretary to have a physical, mental, or emotional
impairment which (A) is expected to be of long-
continued and indefinite duration, (B) substantially
impedes his or her ability to live independently, and
(C) is of such a nature that such ability could be
improved by more suitable housing conditions. A person
shall also be considered to have a disability if such
person has a developmental disability as defined in
section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000. The
Secretary shall prescribe such regulations as may be
necessary to prevent abuses in determining, under the
definitions contained in this paragraph, the
eligibility of families and persons for admission to
and occupancy of housing assisted under this section.
Notwithstanding the preceding provisions of this
paragraph, the term ``person with disabilities''
includes two or more persons with disabilities living
together, one or more such persons living with another
person who is determined (under regulations prescribed
by the Secretary) to be important to their care or
well-being, and the surviving member or members of any
household described in the first sentence of this
paragraph who were living, in a unit assisted under
this section, with the deceased member of the household
at the time of his or her death.
[(3) The term ``supportive housing for persons with
disabilities'' means housing that--
[(A) is designed to meet the special needs of
persons with disabilities, and
[(B) provides supportive services that
address the individual health, mental health or
other special needs of such persons.]
(2)(A) The term ``person with disabilities'' means a
person who is 18 years of age or older and less than 62
years of age, who--
(i) has a disability as defined in section
223 of the Social Security Act,
(ii) is determined, pursuant to regulations
issued by the Secretary, to have a physical,
mental, or emotional impairment which--
(I) is expected to be of long-
continued and indefinite duration;
(II) substantially impedes his or her
ability to live independently; and
(III) is of such a nature that such
ability could be improved by more
suitable housing conditions; or
(iii) has a developmental disability as
defined in section 102 of the Developmental
Disabilities Assistance and Bill of Rights Act
of 2000.
(B) Such term shall not exclude persons who have the disease
of acquired immunodeficiency syndrome or any conditions arising
from the etiologic agent for acquired immunodeficiency
syndrome. Notwithstanding any other provision of law, no
individual shall be considered a person with disabilities, for
purposes of eligibility for low-income housing under this
title, solely on the basis of any drug or alcohol dependence.
The Secretary shall consult with other appropriate Federal
agencies to implement the preceding sentence.
(C) The Secretary shall prescribe such regulations as may be
necessary to prevent abuses in determining, under the
definitions contained in this paragraph, the eligibility of
families and persons for admission to and occupancy of housing
assisted under this section. Notwithstanding the preceding
provisions of this paragraph, the term ``person with
disabilities'' includes two or more persons with disabilities
living together, one or more such persons living with another
person who is determined (under regulations prescribed by the
Secretary) to be important to their care or well-being, and the
surviving member or members of any household described in
subparagraph (A) who were living, in a unit assisted under this
section, with the deceased member of the household at the time
of his or her death.
(3) The term ``supportive housing for persons with
disabilities'' means dwelling units that--
(A) are designed to meet the permanent
housing needs of very low-income persons with
disabilities; and
(B) are located in housing that make
available supportive services that address the
individual health, mental health, or other
needs of such persons.
(4) The term ``independent living facility'' means a
project designed for occupancy by not more than 24
persons with disabilities [(or such higher number of
persons as permitted under criteria that the Secretary
shall prescribe, subject to the limitation under
subsection (h)(6))] in separate dwelling units where
each dwelling unit includes a kitchen and a bath.
(5) The term ``owner'' means a private nonprofit
organization that receives assistance under this
section to develop and operate [a project for]
supportive housing for persons with disabilities.
(6) The term ``private nonprofit organization'' means
any institution or foundation--
(A) * * *
* * * * * * *
Such term includes a for-profit limited partnership the sole
general partner of which is an organization meeting the
requirements under subparagraphs (A), (B), (C), and (D) or a
corporation controlled by an organization meeting the
requirements under subparagraphs (A), (B), (C), and (D).
* * * * * * *
[(l)] (m) Allocation of Funds.--[(1) Allocation.--Of any
amount made available for assistance under this section in any
fiscal year, an amount shall be used for assistance under
subsection (b)(2) that is not less than the amount made
available in appropriation Acts for such assistance in the
preceding year.]
(1) Minimum allocation for multifamily projects.--The
Secretary shall establish a minimum percentage of the
amount made available for each fiscal year for capital
advances under subsection (d)(1) that shall be used for
multifamily projects subject to subsection (e)(4).
(2) Capital advances.--Of any amounts made available
for assistance under subsection (b), such sums as may
be necessary shall be available for funding capital
advances in accordance with [subsection (c)(1)]
subsection (d)(1). Such amounts, the repayments from
such advances, and the proceeds from notes or
obligations issued under this section prior to the
enactment of this Act shall constitute a revolving fund
to be used by the Secretary in carrying out this
section.
(3) Project rental assistance.--Of any amounts made
available for assistance under subsection (b), such
sums as may be necessary shall be available for funding
project rental assistance in accordance with
[subsection (c)(2)] subsection (d)(2).
[(4) Size limitation.--Of any amounts made available
for any fiscal year and used for capital advances or
project rental assistance under paragraphs (1) and (2)
of subsection (d), not more than 25 percent may be used
for supportive housing which contains more than 24
separate dwelling units.]
[(m) Authorization of Appropriations.--There are authorized
to be appropriated for providing assistance under this section
such sums as may be necessary for each of fiscal years 2001,
2002, and 2003.]
(n) Authorization of Appropriations.--There is authorized to
be appropriated for each of fiscal years 2008 through 2012 the
following amounts:
(1) Capital advance/prac program.--For providing
assistance pursuant to subsection (b), such sums as may
be necessary.
(2) Demonstration program.--For carrying out the
demonstration program under subsection (k), such sums
as may be necessary to provide 2,500 incremental
dwelling units under such program in each of fiscal
years 2008 and 2009 and 5,000 incremental dwelling
units under such program in each of fiscal years 2010,
2011, and 2012.
[(n)] (o) Effective Date and Applicability.--
(1) * * *
* * * * * * *
(p) Authorization of Appropriations for Section 8
Assistance.--
(1) In general.--There is authorized to be
appropriated for tenant-based rental assistance under
section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)) for persons with disabilities in
fiscal year 2009 the amount necessary to provide a
number of incremental vouchers under such section that
is equal to the number of vouchers provided in fiscal
year 2008 under the tenant-based rental assistance
program under subsection (d)(4) of this section (as in
effect before the date of the enactment of the Frank
Melville Supportive Housing Investment Act of 2008).
(2) Requirements upon turnover.--The Secretary shall
develop and issue, to public housing agencies that
receive voucher assistance made available under this
subsection and to public housing agencies that received
voucher assistance under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) for
non-elderly disabled families pursuant to appropriation
Acts for fiscal years 1997 through 2002 or any other
subsequent appropriations for incremental vouchers for
non-elderly disabled families, guidance to ensure that,
to the maximum extent possible, such vouchers continue
to be provided upon turnover to qualified persons with
disabilities or to qualified non-elderly disabled
families, respectively.
* * * * * * *